Thursday, 25 May 2017, 2:40 pm Press Release: ACT New Zealand
Tax relief overdue and underdone
“An adjustment of tax
brackets is a welcome compensation for the last seven years
of bracket creep. ACT has been talking about this for years.
But the adjustment is underdone,” says ACT Leader David
Seymour.
“The most any taxpayer will save is $20 a week.
And it’s ultimately more of a tax reset than a genuine tax
cut. Bracket creep will eventually cancel out this tax
relief because National refuses to permanently tie brackets
to inflation.
“And the Government has bafflingly failed
to adjust the top tax bracket, meaning once someone earns
$70,000, they start paying 33% of every pay rise in tax.
$70,000 used to be a big salary, but now it’s not –
especially if you’re paying off a student loan or
mortgage.
“By failing to adjust the top bracket, the tax
burden has shifted even further onto the 17% of Kiwis
earning over $70,000 – who already pay 45% of all income
tax.
“Meanwhile, ACT’s plan would cut tax rates for
every bracket, and ensure no-one pays more than a 25% tax
rate. This would help New Zealanders invest in local
businesses, their families, and
themselves.” ENDS
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